Color of Money: Worried about cuts to Social Security? Author Andy Landis has created the bible on how to navigate this retirement benefit
My husband and I have been talking a lot about when to start collecting our benefits. He wants to start at 62, even though he's fully aware his benefits will be reduced. He argues we can use the money to travel while we're still healthy. I've been arguing to delay to 70. We both reach full retirement age at 67. (Here's the link (wapo.st/2LrCc4f) to my column on our debate over whether to take it early or wait.)
"Quite simply, the later you apply for retirement payments, up to age 70, the higher they'll be for the rest of your life," Landis writes. "You'll get a higher total payout if you live at least to the average life expectancy. And the higher payments might continue even longer, for your spouse after you pass away. It's a gift that keeps on giving, for two lifetimes."
Of course, when you start collecting is an individual decision, and no set course of action applies to everyone.
It's not until chapter 11 that Landis fully addresses the solvency of Social Security. He answers the question I get all the time from young adults. "Will Social Security be bankrupt before I retire?" He says the answer is no.
"Social Security's solvency is a remarkable accomplishment in this era of troubled banks, large insurance companies in receivership, and pension plans in bankruptcy," he says. "Social Security is one of the soundest financial systems in the nation and the world. Americans can take pride in this achievement."
Landis also reminds readers that this program is insurance, not an investment. He makes this point in a discussion about fixes to financially shore up the program.
Despite the denseness of the topic, this book is a very easy read. And it's not just for folks nearing retirement. You need this knowledge long before you're ready to collect benefits. The more you know, the better you can plan.
I'm hosting an online discussion about "Social Security: The Inside Story" at noon Eastern time on June 28 at washingtonpost.com/discussions. Landis, who retired this year at 66, has agreed to join me to take your questions.
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